Each question below consists of a statement followed by two assumptions…
2013
Each question below consists of a statement followed by two assumptions numbered I and II. Consider the statement and decide which of the assumptions is implicit in the statement.
Statement: Recently, the government has asked all public sector banks to reduce the interest rate on housing loans up to ₹25 lakh.
Assumptions:
(I) Public sector banks may reduce the interest rate on all housing loans up to ₹25 lakh.
(II) People may take undue advantage of the government's decision.
- A.
If only assumption I is implicit
- B.
If only assumption II is implicit
- C.
If either assumption I or II is implicit
- D.
If neither assumption I nor II is implicit
Show answer & explanation
Correct answer: A
In assumption questions, an assumption is something the speaker takes for granted while making the statement. To be implicit, it must be a necessary, unstated supposition behind the statement.
Assumption I: When the government directs the public sector banks to reduce the interest rate on housing loans up to ₹25 lakh, it is taken for granted that the banks can and will act on this directive. The government would not issue such an instruction unless it assumed the banks may carry it out. Hence, assumption I is implicit.
Assumption II: That people may take undue advantage of the decision is only a possible future consequence or apprehension. It is not a supposition on which the government's decision rests; in fact, an expectation of misuse would be a reason against the decision, not a basis for it. Hence, assumption II is not implicit.
Therefore, only assumption I is implicit in the statement.